Emerging markets lead global digital payment innovation

Emerging markets are leading global trends in digital payment innovation, often surpassing Western infrastructures through instant payment systems and mobile money. In Brazil, the Pix system processed 64 billion transactions in 2024, nearly doubling the volume of card transactions while offering lower costs to merchants.

In India, the Unified Payments Interface (UPI) has become central to the economy, processing over 24 billion transactions in September alone, valued at approximately $305 billion. However, the National Payments Corporation of India (NPCI) recently postponed the implementation of a proposed 0.4% transaction fee. The delay follows significant pressure from merchants who threatened to refuse UPI payments during the high-volume Diwali festive season.

While the NPCI estimates that maintaining the vast infrastructure, cybersecurity, and fraud prevention requires an annual budget of roughly $2.1 billion, the Indian government has historically prioritized free digital payments to reduce cash dependency. For international merchants, failing to integrate these specific local payment infrastructures can lead to significant operational failures, with research indicating that 64% of merchants entering emerging markets report technical or operational issues related to payment systems.